Is Commercial Auto Insurance Just A Waste of Profits?

Is Commercial Auto Insurance Just A Waste of Profits?

If someone were to walk up to the owner of a trucking company and ask if

When you're "the man" it's up to you to make sure your employees are protected when they're on the road.

they had commercial auto insurance coverage for their vehicles the answer would be a loud, emphatic "yes," possibly with an side order of "obviously". When you've got tens or even hundreds of vehicles and trailers hitting the highways and interstates every day of the week that cost more than some Americans make in a year, making sure you're covered by a good insurance policy is a top priority.

But what about the little guy? Small to mid-sized businesses often don't realize that commercial auto insurance is just as important for their business as it is for major transport companies like Old Dominion or Southeastern.

Companies whose employees regularly use their own vehicles for business use, especially those with a small number of employees, often dismiss the idea of dipping even farther into their profits for extra insurance when their employees are already paying premiums each month. But guess what? Personal auto insurance doesn't always pay the bills when the vehicle is damaged on company time.

Much like Workman's Comp, the auto insurance industry assumes that if a vehicle is damaged on company time doing company business the financial consequences become the responsibility of the man in charge. If you happen to be "The Man" you're going to be responsible for picking up the tab.

That means that not only are your vehicles tied up while repairs are being made, the exorbitant cost of those repairs, any personal property that was damaged and whatever medical bills have to be paid will have to come out of your profits. If it was just a little fender bender the damage might not be too bad, but a major accident (and the accompanying lawsuit) can leave your business running in the red in less time than it takes you to order take-out.

When you're running a business you've got more to worry about than how you're going to pay for an accident, and unless you live in an area sans trees, wind, snow, rain, traffic and wildlife it's bound to happen sooner or later. It doesn't matter how well you (or your employees) drive, statistically the odds are against you. There are over 6 million auto accidents in the U.S. each year. Not even the most pessimistic statistician can blame all of them on careless drivers. Bad things happen to good people, and a good commercial auto insurance company will go a long way toward protecting you from the fall-out when it happens to you.

Commercial auto insurance will make sure that:

· Every vehicle your company uses has comprehensive/collision coverage, uninsured motorist coverage and liability coverage, as well as whatever additional coverage you decide is right for your business.

· Your employees are covered when they're driving on company time, whether they're in their own car or a company owned vehicle.

· You never have to spend three weeks arguing with your insurance company over whether your car is used primarily for business or pleasure before they'll pay a claim!

The bottom line is you can never be too careful when it comes to your business. Commercial auto insurance will go a long way toward protecting your profits from the inevitable traffic wars and make sure you and your employees are covered from the minute you step out of the office.

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